0 sats \ 2 replies \ @orthwyrm 7 Feb 2023 \ on: Why Multi Sig? Why not a Passphrase? bitcoin
Multi-sig really shines when there are multiple parties involved. Collaborative custody models, businesses, and inheritance planning come to mind.
For individuals, I think it depends on your threat model. If you are a public figure who is known to possess large sums of bitcoin (Saylor for example), you should probably consider multi-sig. Even under duress, you cannot be forced to spend the funds without visiting every backup location. Quite impractical for an attacker if split across countries.
write
preview
0 sats \ 1 reply \ @Oxjogir OP 8 Feb 2023
Thats a good point, regarding how much exposure you have it might be a good idea to have a multi location Multi Sig. However, with plebs with Multi Sig wallets, the odds that they have a multi location safe split across countries are quite minimal.
reply
0 sats \ 0 replies \ @orthwyrm 8 Feb 2023
Agreed. If you only have 1-2 safe locations, either seed + passphrase or a 2-of-3 collaborative custody model might make more sense.
For the record, I actually use a seed + passphrase. I have metal backups of each in two different locations. The passphrase I also have memorized, and the seed also in a hardware wallet (so two backups each). I figured this was robust enough for my circumstances, and I like the ease of recovery and plausible deniability that passphrases offer.
If my ownership of bitcoin were to become widely known (say an exchange hack), I'd upgrade to multi-sig.
reply